GameStop’s (NYSE: GME) fiscal Q3 earnings performance was better than expected, but this stock is still not a good one to hold, buy, or trade. That’s because the core retail business continues to flounder, the strengths are driven by a cash balance tied to aggressive dilution, and the Bitcoin (BTC) strategy is highly questionable. While the company has been able to convert some of its cash into BTC, the reasons for its holding BTC are ephemeral. The critical takeaway is that other BTC-focused stocks are in even worse condition (in terms of shareholder value) than GameStop, increasing the odds that GME’s stock is on track for a massive decline.
Strategy (NASDAQ: MSTR) is a prime example of why BTC repository stocks are a potential waste of time. The company persistently dilutes its stock to fund BTC purchases, eroding shareholder value and increasing Bitcoin exposure risk. In Q4 2025, the price of BTC pulled back sharply from its highs, is trading well below GameStop’s entry point, and has an outsized impact on Strategy’s share price, pointing to similar weakness in GME. Down more than 50% from its high, MSTR stock is setting up for another downleg that could take it below the $150 mark and potentially to levels not seen in several years.
